By Redactor Navigating the aftermath of an accident or disaster is stressful enough without having to worry about your insurance company acting in bad faith. Unfortunately, some insurance adjusters employ questionable tactics to minimize payouts or deny legitimate claims. Understanding these common bad-faith techniques is crucial for protecting your rights and ensuring you receive the compensation you deserve. Recognizing these strategies is the first step in holding your insurance company accountable and pursuing legal action if necessary. This article will expose the 6 most common insurance adjuster bad-faith techniques that you should be aware of.
1. Unreasonable Delays in Claim Processing
One of the most frustrating and common insurance adjuster bad-faith techniques is delaying the claim process unnecessarily. This can manifest in several ways:
- Ignoring Communication: Failing to return phone calls, emails, or letters within a reasonable timeframe.
- Requesting Redundant Information: Constantly asking for the same documents or information that has already been provided.
- Prolonged Investigation: Taking an unreasonably long time to investigate the claim without a justifiable reason.
These delays are often a tactic to pressure you into accepting a lower settlement offer out of desperation.
2. Lowball Offers and Undervaluation
Insurance companies may attempt to settle your claim for far less than its actual worth. This involves:
- Using Inadequate Repair Estimates: Relying on biased or substandard repair estimates that don’t fully cover the cost of repairs.
- Ignoring Policy Provisions: Disregarding specific terms and conditions outlined in your insurance policy that entitle you to greater compensation.
- Depreciating Items Unfairly: Applying excessive depreciation to your damaged property, reducing its value significantly.
3. Denial of a Legitimate Claim Without Proper Investigation
Outright denial of a valid claim without conducting a thorough and impartial investigation is a clear sign of bad faith. This includes:
- Failing to Interview Witnesses: Refusing to interview relevant witnesses who can corroborate your claim.
- Ignoring Evidence: Disregarding evidence that supports your claim, such as police reports, medical records, or expert opinions.
- Misinterpreting Policy Language: Twisting the language of your policy to justify denying coverage.
4. Misrepresentation of Policy Language
Insurance adjusters may deliberately misinterpret the terms and conditions of your policy to deny coverage or reduce the amount of your payout. This can involve:
- Claiming a Loss is Excluded: Falsely claiming that your loss is excluded under a specific policy provision.
- Ignoring Ambiguous Language: Failing to resolve any ambiguities in the policy language in your favor, as required by law.
5. Failure to Adequately Communicate
Clear and consistent communication is essential throughout the claims process. Bad faith can occur when adjusters:
- Lack of Transparency: Failing to provide you with clear explanations regarding the status of your claim or the reasons for a denial.
- Providing Conflicting Information: Giving you contradictory or misleading information about your policy or the claims process.
6. Intimidation and Coercion
In extreme cases, insurance adjusters may resort to intimidation or coercive tactics to pressure you into accepting a settlement. This can include:
- Threatening to Deny the Claim: Threatening to deny your claim if you don’t agree to a specific settlement amount.
- Using Aggressive Tactics: Employing aggressive or harassing communication tactics to intimidate you.
Protecting yourself from these insurance adjuster bad-faith techniques requires vigilance and a thorough understanding of your rights. Seek legal counsel if you suspect your insurance company is acting in bad faith to ensure you receive the compensation you deserve.
